Incentive
Risk & psychologyThe financial or reputational reward shaping what a source produces and emphasises.
In plain terms
Free content is paid for by someone. Working out who, and for what, explains most of what you are shown.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Incentive alignment
Fundamental analysisWhether management is rewarded for the same outcomes shareholders want.
In plain terms
Whatever the variable pay is linked to is what will get maximised.
Production Linked Incentive
Fundamental analysisAlso called: PLI
A central government scheme paying a percentage of incremental sales of qualifying goods manufactured in India, over a fixed base year, for a defined number of years and subject to a ceiling.
In plain terms
A rent holiday with the end date printed in a public notification. Counting the cash is correct; carrying the margin past the tenure quietly assumes a scheme extension nobody has announced.
Conflict of interest
Regulation & taxA situation where an adviser’s incentives diverge from the interests of the person receiving the advice.
In plain terms
It rarely works through lying. It works through which ideas get produced and which never come up.
Distributor
Regulation & taxAn intermediary paid commission by the asset manager for selling its products.
In plain terms
Not dishonest — but paid by the manufacturer, so the incentive points at regular plans and switching.
Other operating income
AccountingIncome arising from a company’s ordinary operations but not from the sale of its principal goods or services, presented within revenue from operations.
In plain terms
Where scheme receipts, scrap sales and export incentives usually land. Because it is inside revenue it is also inside EBITDA, which is how an operating margin improves without the manufacturing improving.
RoDTEP
Fundamental analysisAlso called: Remission of Duties and Taxes on Exported Products
Remission of Duties and Taxes on Exported Products — a scheme refunding embedded duties and taxes on export value as transferable electronic scrips, notified rate by rate against the customs tariff.
In plain terms
It replaced the earlier MEIS after India’s export incentives were found inconsistent with WTO rules, and it is framed as a remission rather than a subsidy for that reason. It generally sits above EBITDA, so it lifts the operating margin rather than just the tax line.